Although technology and automation have vastly increased and enhanced the efficiency of payroll, the fact of the matter is that there are still many flaws in the system. Thousands of finance and HR managers still struggle with payroll at the end of every month.
We thought we would take a look at some of the easiest ways of managing payroll in this age of technology. What can the modern payroll department benefit from and how can they streamline the process? We unpacked some of our favorite tips and methods of managing payroll.
Automate the Process
If you are still processing payroll manually, you need to remember that there are numerous options for you out there to effectively automate the process. Whether you are in a large corporation, or in a small business, there are options for you to make the processes as efficient as possible.
If you are running a small business, for example, you can consider using a payroll app for small business owners. It automatically files and sends your payroll tax payments, seamlessly tracks time and attendance, and does direct deposits and paper checks. You are also able to run payroll as many times as you like. So, even if you are running a remote team and making weekly payments, this process is efficient. You can also use these Accounting software for small business for your payroll tax payments.
Create a Digital Payroll Calendar
A digital or online calendar works in several ways. First, it highlights various deadlines throughout the month that you need to have in place for a successful payroll. From entering new employees to removing redundant staff, it is a digital overview of vital dates that you need to adhere to.
If you look for the right one, you can also choose one that sends you alerts, notifications, and reminders to prompt you to ensure deadlines are met. It will also clearly note the processing week number, as well as all state and national holidays of all of your employees so that you can plan your payroll accordingly.
Document Your Payroll Process
There is one thing that almost every worker in the world hates, and that is documentation. Unfortunately for payroll, it is vital when paying your employees. First, you will need full documentation of what your process is. Track every step, and ensure that you have a record of each month. You will want this in case of audit or dispute purposes.
You will also want a centralized hub for your vital documentation, information, and data. Whether it be the vital employees’ details and key information or a standard payroll processing manual for the payroll department, keep all of that information together.
It is also worth your while documenting your steps when printing and filing payroll registers and tax reports, as well as the names of the individuals to whom you will be handing the paychecks if you do it physically.
Make Use of Collaborative, Tracking, and Scheduling Tools
This comes especially handy when your staff is made up of remote employees. But we have seen thousands of companies integrating these tools into their daily operations and seeing monumental improvements. Tracking and collaborative tools allow you to monitor tasks and projects that your employees are working on. You can monitor progress, establish the status of the project and the time spent on it.
Employees globally are making use of tracking tools like Toggl. They are able to start and pause timers to track their time spent. They can also differentiate projects and tasks. So, if time is spent in a meeting in comparison to writing content, for example, this can be recorded, tracked, and billed separately. Collaboration tools like Monday.com are also useful for understanding how each member spent their time and how long each project took to bill clients.
Audit Your Payroll Department
We know, the word audit sends a shiver down our spines too. But, in the long run, this is actually highly beneficial for you. It reduces the risks of discrepancies and streamlines your process when a lot of your payroll process (like timecards) is physical. It is also useful as even automated systems can also be affected by data entry errors, especially in the case of new employees.
A quick audit can simply comprise of:
- Verify and reconcile the accounting, payroll, and cash documentation;
- Test plugins or add-ons to synchronize payroll software;
- Integrate and test check-in systems or tracking tools and synchronize those.
Your thorough documentation of each process as we suggested earlier will also assist in the audit.
The Bottom Line
There’s no one-size-fits-all formula for successfully managing payroll. There are a plethora of tools and platforms for you to choose from to assist in managing payroll. Test out a few of them and determine which ones work for you and your company first.